Fuel Price Surge in Pakistan Sparks Inflation Concerns

Karachi: The recent rise in petrol and high-speed diesel prices in Pakistan has triggered alarm among business leaders and citizens, with predictions of escalating inflation and financial strain on households. Mian Zahid Hussain, a prominent figure in business circles, has expressed concern over the federal government’s decision to increase fuel prices, which he describes as a financial burden on the public.

Hussain, who holds multiple leadership roles in business forums, highlighted that petrol prices have surged by Rs 5.36 per liter, while diesel has increased by Rs 11.37 per liter. These adjustments bring petrol to Rs 272.15 per liter and diesel to Rs 284.35 per liter, according to the federal finance ministry.

Addressing the business community, Hussain stressed that the fuel price hike will severely affect middle- and lower-income groups. The increase in diesel prices is expected to raise transport and agricultural costs, further inflating food prices and impacting businesses.

Hussain criticized the government’s reliance on recommendations from OGRA and relevant ministries for the price hike, noting a lack of measures to alleviate the financial pressure on citizens. He pointed out that the government collected Rs 1.161 trillion through the petroleum levy in fiscal year 2024, with plans to increase the target by 27 percent this year.

The business leader called for a review of the government’s pricing strategy, emphasizing the need for a comprehensive approach to offer relief to the public. He warned of the repercussions of continued price increases, including heightened inflation, increased business costs, and potential social unrest.

Hussain urged the government to explore alternative revenue sources and reduce the tax burden on lower-income groups. He advocated for broader fiscal reforms and transparent pricing to prevent further erosion of household purchasing power and business viability.